International Compliance Programs Flashcards
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Read the first 7 International Compliance Programs flashcards as text
Which international framework provides guidance on anti-bribery management systems and is recognized as the global standard for anti-corruption compliance?
Answer: ISO 37001
ISO 37001 is the international standard specifically designed for anti-bribery management systems, providing a framework for organizations to prevent, detect, and respond to bribery.
When a U.S. company's foreign subsidiary makes a payment to a government official to expedite a routine customs clearance, this most likely violates which law?
Answer: The Foreign Corrupt Practices Act
The FCPA prohibits U.S. companies and their foreign subsidiaries from making payments to foreign government officials to obtain or retain business, including facilitation payments above de minimis thresholds.
A multinational company conducts an acquisition of a foreign entity and discovers pre-acquisition FCPA violations. What is the best immediate compliance action?
Answer: Conduct thorough post-acquisition due diligence and consider voluntary disclosure
Post-acquisition due diligence to uncover inherited liabilities followed by timely voluntary disclosure to the DOJ/SEC is the recommended approach and can result in reduced penalties.
Under the UK Bribery Act 2010, what defense is available to a commercial organization charged with failing to prevent bribery by an associated person?
Answer: Having adequate procedures in place to prevent bribery
The UK Bribery Act's Section 7 offense of failing to prevent bribery has only one defense: the organization had adequate procedures designed to prevent associated persons from bribing.
Which approach is most effective for localizing a global compliance program for operations in countries with high corruption risk?
Answer: Supplement global policies with country-specific controls and enhanced due diligence requirements
High-corruption-risk jurisdictions require supplemental controls beyond global minimums, including enhanced third-party due diligence, additional transaction monitoring, and local language training.
What is the primary purpose of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions?
Answer: To harmonize anti-bribery laws across signatory countries and establish a common legal framework
The OECD Anti-Bribery Convention requires signatory countries to criminalize the bribery of foreign public officials, creating a harmonized legal framework across 44+ countries.
A compliance officer discovers that a third-party sales agent in a high-risk market has failed to maintain records of government interactions as required by contract. What is the most appropriate immediate response?
Answer: Issue a written notice of breach, suspend new business referrals, and conduct an audit of the agent's activities
A measured response of formal notice, suspension of new activities, and audit preserves legal rights while gathering facts needed to determine whether termination or remediation is warranted.